Publications

- December 1, 2019: Vol. 13, Number 11

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Senior independent living offers attractive premiums

by Marek Handzel

Senior independent living yields currently stand at an average of 4 percent to 4.5 percent in Europe, representing an attractive premium over standard residential of between 150 and 200 basis points, according to AEW.

In its European research monthly report, the manager has said that the sector is attracting investors due to its positive yields, and ability to combine the benefits of residential investments. These include stable income streams and a low correlation with economic cycles. The sector also has the benefits of commercial real estate, such as long, triple-net commercial leases, signed with a single operator.

In addition, independent living offers attractive investment opportunities due to strong demand fundamentals, high occupation rates, low resident turnover and a diversified revenue model for operators.

AEW’s report focuses on independent senior living, where professional operators lease entire properties from investors. In turn, residents sublet

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